Cash-strapped Air India Ltd has asked oil marketing companies to bring the discount on aviation turbine fuel (ATF) they supply the national carrier on par with what is offered to private airlines.
Air India has also proposed to fly executives of oil firms at concessional rates in lieu of a higher discount on fuel, said two Air India executives who did not want to be named.
Since December, Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd have put Air India, which owes them Rs.2,400 crore in dues, on a so-called cash-and-carry mode for purchasing jet fuel. The airline has to pay on the spot for purchases, rather than enjoy a credit of 60-90 days, as it used to.
Air India had to cancel several domestic and international flights on Friday after oil firms refused to provide fuel.
31/05/11 PR Sanjai/Live Mint
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